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Free trading websites

Discuss Brokers, trading, fees, experiences
Cookie
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Free trading websites

#128204

Postby Cookie » March 27th, 2018, 7:56 am

Came across this and some others

https://www.plus500.co.uk/

Wondering what people thought of these types of websites and whether they have any use to investors?

PeterGray
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Re: Free trading websites

#128223

Postby PeterGray » March 27th, 2018, 9:20 am

The important thing to realise is these are not "Free".

If you trade shares with them you do not buy the shares, you buy a CFD. The spread on that is likely to be larger than buying the shares themselves in the open market. Plus if you hold overnight there are finance charges. I would recommend reading the information document on their website in detail.

Peter

GeoffF100
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Re: Free trading websites

#128238

Postby GeoffF100 » March 27th, 2018, 10:18 am

I think that you will find that the spreads are comparable with buying the underlying securities. The overnight funding charges will be the killer. They are well hidden away on Plus 500. You can find them easily on IG Index, and they are not cheap.

vafelka
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Re: Free trading websites

#148623

Postby vafelka » June 28th, 2018, 2:01 pm

I use capital.com and it's ok. No hidden commissions etc. But overnight fee could be lower, true.

TahiPanasDua
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Re: Free trading websites

#148660

Postby TahiPanasDua » June 28th, 2018, 4:16 pm

Cookie wrote:Came across this and some others

https://www.plus500.co.uk/

Wondering what people thought of these types of websites and whether they have any use to investors?


I don't want to sound like a sanctimonious twit but there is a simple rule you need to learn and it will rarely let you down.: No commercial organization ever gives you anything for free and you should approach such claims with extreme caution.

TP2

SalvorHardin
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Re: Free trading websites

#148672

Postby SalvorHardin » June 28th, 2018, 5:29 pm

TahiPanasDua wrote:I don't want to sound like a sanctimonious twit but there is a simple rule you need to learn and it will rarely let you down.: No commercial organization ever gives you anything for free and you should approach such claims with extreme caution.

+1 for this. Whenever I see the word "free" in relation to any financial service this triggers a heightened alertness response.

I know someone who before the 2008 financial crisis used to trade shares via a zero commission broker. They got their piece of the action by charging him a much bigger spread and delaying settlement by a week (this was back in the days when you could earn a decent interest rate on cash!).

And as many Facebook users have discovered, if you're not paying for the product you are the product. As Jeff Beck sang in Hi-Ho Silver Lining, only nothing's for free.

PinkDalek
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Re: Free trading websites

#148674

Postby PinkDalek » June 28th, 2018, 5:39 pm

The OP back in March was referring to the FREE Demo Account at Plus500, although that was not exactly clear.

As a former shareholder, who got out at the wrong time due to the wht issues, I'll not write about Plus500 but there were plenty of issues described at TMF in some detail and the FSA fine https://preview.tinyurl.com/yarszwze [totaling {sic}]

Not that any of that related to the FREE Demo Account per se.


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